With the Chinese government’s crackdown on drug companies, sales and profits and even the staff morale of the companies under investigation are under threat. Hong Kong-listed Chinese pharmaceutical company Sino Biopharmaceutical is the latest to be affected with its shares plunging nearly 17 per cent on the news that it had become the first major listed Chinese drug company to be probed.
So what pre-emptive measures can pharmaceutical companies take in this scenario? And what can other companies learn from this situation?
- First, companies should examine their existing compliance measures for any global inconsistencies. Leaders should reinforce that different standards of compliance are not acceptable in different cultural contexts. It is not a case of “When in Rome, do as the Romans do.” A universal standard should be communicated and enforced at all times.
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Rachel Catanach is FleishmanHillard’s Reputation Practice Leader for China. You can reach her at firstname.lastname@example.org.